Dalton V Anovos Productions
Dalton V Anovos Productions
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CLASS ACTION COMPLAINT - ! 1 of !26 - CASE NO. 2:19-CV-04821
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1 INTRODUCTION
2 1. Richard Dalton (“Plaintiff”), through his attorneys, brings this class action
3 complaint for damages, and injunctive relief, and any other available legal or
4 equitable remedies, resulting from the illegal actions of Anovos Productions,
5 LLC (“Anovos”); Disney Lucasfilm Ltd. (“Disney”); NBCUniversal Media,
6 LLC (“NBCU”); and CBS Studios, Inc. (“CBS”) (collectively “Defendants”),
7 in connection with the marketing and sale of licensed products.
8 2. More specifically, Plaintiff brings this complaint, by and through his
9 attorneys, for damages arising out of Defendants’ practice of charging
10 consumers upfront costs for licensed products and shipping, despite the fact
11 these products were never delivered and monies never refunded.
12 3. Plaintiff alleges as follows upon personal knowledge as to his own acts and
13 experiences, and, as to all other matters, upon information and belief,
14 including investigation conducted by Plaintiff’s attorneys.
15 4. Defendants collectively engaged in fraudulent practices in connection with
16 their licensing and or marketing of products to consumers. At all times
17 material to this complaint, Defendants Disney, NBCU, and CBS (collectively
18 “Licensors”) controlled the acts and practices of Anovos, including the acts
19 and practices alleged in this complaint.
20 5. Specifically, Licensors licensed the right to sell their products with their logos
21 and despite having knowledge of Anovos’ fraudulent scheme to abscond with
22 consumers’ money, Licensors continued to reap profits from their licensing
23 agreements.
24 6. Employing this strategy Defendants profited for years at the expense of
25 Plaintiff and consumers alike.
26 7. Unless otherwise indicated, the use of Defendants’ name in this Complaint
27 includes all agents, employees, officers, members, directors, heirs, successors,
28
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1 22. In the instances described below, consumers who purchased Anovos products,
2 after experiencing significant delays, have never received the products they
3 already paid for nor have they received a refund for their payments.
4 Anovos Products
5 23. Defendant Anovos operates anovos.com, which sells accurate unifoms and
6 prop replicas from movies, television, and contemporary media, all of which
7 are manufactured and marketed by Anovos.
8 24. Many Anovos customers go through great lengths to acquire Anovos’
9 products for Cosplay.
10 25. Cosplay is short for the term costume play. Cosplay refers to someone
11 dressing up as a superhero or a character from a video game, comic book, or
12 movie. Cosplay's popularity surged in the '90s, when Japanese anime and
13 manga gained popularity in the US. Cosplay’s popularity has surged to the
14 point where there is even a television show about it—Heroes of Cosplay.
15 26. Cosplay is the next level of fandom.
16 27. Cosplay is about expressing what individuals love as well as being about
17 community. While anyone can cosplay, cosplayers often attend and display
18 their costumes at world renowned conventions such as the San Diego Comic-
19 Con.
20 28. Indeed, cosplay is often seen as a type of performance art.
21 29. Still, a majority of Anovos customers are not involved in Cosplay
22 30. Instead, Anovos customers are made up of a variety of individuals.
23 31. Be it the love of a character, interests in collecting, enjoying the attention of
24 being in an elaborate costume or portraying a loved character, or the
25 appreciation from completing a complex costume or model, there are many
26 motivations for purchasing Anovos products.
27 32. Accordingly, obtaining the the high-end costumes and replicas in a timely
28 manner is paramount for consumers.
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1 33. Anovos’ website currently, and at all times relevant, marketed Star Wars, Star
2 Trek, and Battlestar Galactica memorabilia for pre-sale orders. Its website
3 describes products for sale, their prices, estimated delivery dates, and terms
4 and conditions of sale. It touts the process for creating its replicas including
5 gaining access to the original films and the uniqueness of the unaltered
6 versions Anovos can provide.
7 34. For all pre-orders, Defendants have required consumers pay upfront the entire
8 amount of an order stating, “Payment for the order is remitted at the time the
9 order is placed, in addition to shipping and handling. . . .”
10 Plaintiff Richard Dalton
11 35. On or around March 22, 2016, Plaintiff made the first of many purchases on
12 Anovos’ website for a Star Trek Spock Replica Blue Tunic, Star Wars TIE
13 Fighter Pilot Helmet, Star Trek Captain Kirk Replica Gold Tunic, and a Star
14 Trek Starfleet Uniform Shirt for a total of $856.80 plus $54.27 shipping.
15 36. Upon submission of Plaintiff’s order, Plaintiff paid and Anovos received the
16 entire payment amount of $911.07.
17 37. To date, over three years later, Plaintiff has not received these items nor a
18 refund for the $911.07 paid to Anovos.
19 38. Unsuspecting of Anovos’ business practices, on or around April 16, 2016,
20 Plaintiff made a second purchase inclusive of a Star Wars Imperil Shadow
21 Trooper (Pre-order) kit with Completed Helmet and a Star Wars: The Force
22 Awakens: Kylo Ren Costume Ensemble with Helmet (Pre-order) for a total of
23 $3,420.00 plus $51.69 shipping.
24 39. Upon submission of Plaintiff’s order, Plaintiff paid and Anovos received the
25 entire payment amount of $3,471.69.
26 40. Similarly, to date, Plaintiff has not received these items nor a refund for the
27 $3,471.69 paid to Anovos.
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1 48. However, Anovos has still not delivered its pre-ordered and pre-paid products
2 to Plaintiff.
3 Defendants Practices
4 49. Despite Anovos’ inability to fulfill the hundreds, if not thousands of pre-paid
5 orders customers have already submitted, Anovos continues to market and sell
6 pre-order items on its website and on social media in the same manner:
7 requiring full upfront costs of the items in addition to shipping.
8 50. In numerous instances, consumers reached out directly to CBS, NBCU, and
9 Disney regarding their concerns about Anovos.
10 51. Indeed, as early as 2016, Anovos’ conduct has been heavily scrutinized.
11 52. Due to the high volume of consumer complaints concerning Anovos’ failure
12 to deliver purchased items, on January 27, 2016, the Better Business Bureau
13 (BBB) sent a certified letter to Anovos. Specifically the letter addressed
14 complaints similar to Plaintiff’s, denouncing the fact that consumers were not
15 receiving their orders.
16 53. After receiving no response from Anovos, BBB sent a follow up certified
17 letter to Anovos in Mach of 2016. However, Anovos has failed to respond, nor
18 improve its practices.
19 54. Instead, Anovos has recently announced on April 11, 2019 its new “all sales
20 are final” policy, whereby refunds for pre-ordered (non-delivered) products
21 placed in the future can no longer be issued.
22 55. Despite this “new” announcement, regardless of Anovos’ purported policy in
23 place, Anovos has often failed to provide refunds to consumers, even though
24 they have not provided consumers with promised products or consumers have
25 not received products for years.
26 56. In numerous instances, consumers have tried to contact Defendants to cancel
27 their orders and obtain refunds, but have either been unable to reach
28 Defendants or are told to simply wait.
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1 57. Upon information and belief, Anovos must pay a minimum guarantee to
2 Licensors.
3 58. Typically, a licensee only pays royalty fees once a minimum guarantee has
4 been paid off. Thus, however much Anovos paid Licensors on release of their
5 licensed products, Anovos would only pay royalties once the products net
6 sales exceed that amount paid.
7 59. Over the lifetime of the individual licensing agreements between Licensors
8 and Anovos, Licensors have collected their minimum guarantees and are
9 further incentivized to have Anovos continue sales in order for Licensors to
10 collect earned royalty income therefrom.
11 60. Upon information and belief, Licensors are the owners of everything Anovos
12 designs, creates, markets and sells for Licensors.
13 61. Throughout Anovos’ advertisements whether on its own website or social
14 media, Licensors’ logos are prominently featured on each promotional
15 material and product.
16 62. Should Anovos fail to meet agreed upon quality standards, Licensors can
17 order Anovos to stop the production of said product.
18 63. Accordingly, Licensors have a duty to supervise Anovos’ use of the Licensors’
19 own marks.
20 64. Licensors knew or should have known of Anovos’ scheme. Nevertheless,
21 Licensors profited from the scheme by permitting Anovos to use their well-
22 known names and trademarked logos to induce target consumers to become
23 Anovos customers.
24 65. There is a causal nexus between the Licensors and Anovos. The Licensors
25 awarded Anovos the Star Wars, Star Trek, and Battlestar Galactica replica and
26 costume licenses thereby approving Anovos’ decisions to advertise, market,
27 design, and distribute such costume and replica memorabilia.
28
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1 66. While the Licensors acknowledged the complaints against Anovos and
2 Anovos’ inability to adhere to the purchase agreements it made with
3 consumers, the Licensors still renewed Anovos’ licensing agreements and
4 permitted Anovos to continue to defraud consumers.
5 67. Throughout the proposed class period, Anovos’ conduct was on behalf of and
6 with the authorization of each of the Licensors in a coordinated effort to earn
7 profit on Star Wars, Star Trek, and Battlestar Galactica memorabilia.
8 68. The Licensors maintained profits from their licensing agreements with
9 Anovos at the expense of consumers.
10 69. Consequently, Anovos’ illegal actions were the responsibility of the Licensors
11 both directly and vicariously. Therefore, Disney, CBS, and NBCU are each
12 liable for Anovos’ unlawful conduct discussed herein as it pertains to their
13 licensed products.
14 70. Despite notice of errors, lack of oversight, deliberate ignorance of complaints
15 Defendants continue their unlawful and fraudulent practices, subjecting
16 consumers not only to substantial stress, frustration, and anxiety over
17 Defendants, but also economic damages - Defendants’ deposit of unearned
18 payments.
19 71. In truth and in fact, consumers have not received their pre-ordered and pre-
20 paid products. Consumers have suffered and will continue to suffer
21 substantial injury as a result of Defendants’ conduct.
22 72. Defendants took advantage of Plaintiff and consumers alike through their
23 joint oppressive and fraudulent conduct, including but not limited to inducing
24 consumers into purchasing items it did not have the intentions nor ability to
25 produce, then for years continuously requesting consumers pre-order items all
26 the while stalling at production of the products.
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1 73. Plaintiff, believing that Defendants were acting in good faith naively paid for
2 unearned payments, until the day Plaintiff realized that the products promised
3 by Defendants would never be delivered.
4 CLASS ACTION ALLEGATIONS
5 74. Plaintiff and the members of the Class have all suffered injury in fact as a
6 result of the Defendants' unlawful and misleading conduct.
7 75. The “Class Period” means four years prior to filing of the Complaint in this
8 action.
9 76. Plaintiff brings this lawsuit individually and on behalf of other consumers
10 similarly situated. Subject to additional information obtained through further
11 investigation and/or discovery, the proposed “Class” consists of:
12
All consumers who paid for a pre-order product(s) from Anovos and
13
licensed by Disney, NBCU, and/or CBS, and who have not received the
14 product nor a refund from January 1, 2016 through the present.
15
77. Excluded from the Class are Defendants and any of Defendants' officers,
16
directors, and employees. Plaintiff reserves the right to modify or amend the
17
Class definition before the Court determines whether certification is
18
appropriate.
19
78. Ascertainability. The members of the Class are readily ascertainable from
20
Defendants' records, as well as through public notice.
21
79. Numerosity. The members of the Class are so numerous that their individual
22
joinder is impracticable. Plaintiff is informed and believe, and on that basis
23
alleges, that the proposed class consists of thousands of members.
24
80. Existence and Predominance of Common Questions of Law and Fact.
25
Common questions of law and fact exist as to all members of the Class , and
26
predominate over any questions affecting only individual Class members. All
27
members of the Class have been subject to the same conduct and their claims
28
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1 and class members’ payments for products as well as shipping that were never
2 and will never be shipped.
3 91. Defendants failed to disclose that Defendants were charging Plaintiff monies
4 that were never earned i.e. fees that were not going towards products Plaintiff
5 and the class would receive.
6 92. Plaintiff reasonably believed that Defendants would deliver the products
7 purchased.
8 93. Plaintiff reasonably relied first on the truthfulness of Defendants' online
9 advertisements and then on Defendants continuous notifications that despite
10 delays in shipping, products would still be delivered to consumers.
11 94. As a result of Defendants' fraudulent misrepresentations, concealment of the
12 true nature of pre-orders, and refusals to refund monies to Plaintiff and
13 consumers alike, Plaintiff and the class suffered great economic injury.
14 95. Thus, Plaintiff and the Class seek economic and non-economic damages,
15 punitive damages, attorneys' fees, and litigation costs as a result of
16 Defendants' oppressive and fraudulent conduct.
17 SECOND CAUSE OF ACTION
18 BREACH OF CONTRACT
19 (PLAINTIFF V. ANOVOS)
20 96. Plaintiff repeats, re-alleges, and incorporates by reference, all of the above
21 paragraphs of this Complaint as though fully stated herein.
22 97. On or about March 22, 2016 Plaintiff ordered a Star Treck: The Movie -
23 Spock Replica Blue Tunic; a Star Wars: The Force Awakens: First Order TIE
24 Fighter Pilot Helmet Premier Line Accessory; Star Trek: The Movie - Captain
25 Kirk Replica Gold Tunic; Star Trek: Into Darkness - Starfleet Uniform Shirt
26 from Anovos’ website. (Order # 20352).
27 98. Plaintiff paid Anovos $911.07 for the products and shipping.
28
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1 99. Despite Plaintiff’s payment, Plaintiff has yet to receive these products from
2 Anovos.
3 100. Following, Plaintiff made 47 additional purchases. (Order #s 21055; 21094;
4 24447; 24453; 35626; 39430; 43050; 43169; 43276; 43603; 44364; 44567;
5 44568; 46382; 46510; 47111; 47285; 47494; 48004; 48720; 48855; 50388;
6 50389; 50390; 50434; 50435; 50489; 50725; 50831; 52545; 52706; 52707;
7 52741; 52935; 53360; 53530; 54865; 54866; 55017; 55368; 55584; 57346;
8 57453; 57760; 57832; 57869; and 60966.)
9 101. Just as with the March 22, 2016 purchase, Anovos failed to fulfill these
10 orders.
11 102. As a direct and proximate result of Defendant Anovos’ aforesaid conduct,
12 Plaintiff and the Class suffered direct financial harm.
13 103. As a direct and proximate result of Defendant, Anovos’ aforesaid conduct,
14 Plaintiff and the Class suffered and will continue to suffer economic damages
15 and the loss of use of the products they were promised.
16 104. Therefore, Plaintiff and the class are entitled to recover damages, and seek a
17 injunctive relief to prevent such conduct in the future.
18 THIRD CAUSE OF ACTION
19 UNJUST ENRICHMENT
20 105. Plaintiff repeats, re-alleges, and incorporates by reference, all of the above
21 paragraphs of this Complaint as though fully stated herein.
22 106. At all times relevant hereto, Defendants unlawfully and unjustly absconded
23 with Plaintiff and the Class’ funds.
24 107. Defendants had and followed a policy and practice of taking the full price of
25 pre-ordered products from consumers then failing to deliver those products.
26 108. Defendants thereafter unlawfully retained Plaintiff and the Class’ funds.
27 //
28 //
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1 122. Plaintiff could not have reasonably avoided the injury he suffered. Indeed, for
2 years, Anovos announced it would fulfill Plaintiff’s pre-order shipments.
3 123. Plaintiff reserves the right to allege further conduct that constitutes other
4 unfair business acts or practices. Such conduct is ongoing and continues to
5 this date, as Defendants continue to mislead the public.
6 C. “Fraudulent” Prong
7 124. Defendants’ claims and statements were false, misleading and/or likely to
8 deceive the consuming public within the meaning of Business & Professions
9 Code § 17200, et seq. Whether through conduct, in writing or orally,
10 Defendants engaged in fraudulent acts and business practices by knowingly or
11 negligently representing to the public, that Defendants’ would be produced by
12 certain dates, year after year.
13 125. Plaintiff reserves the right to allege further conduct that constitutes other
14 fraudulent business acts or practices. Such conduct is ongoing and continues
15 to this date.
16 126. Defendants’ fraudulent, unlawful and unfair business practices, as described
17 above, present an ongoing threat to consumers because consumers will
18 continue to be misled by the products and services Defendants offer on its
19 website and through social media.
20 127. Plaintiff has suffered injury in fact and has lost money as a result of
21 Defendants' unfair competition, as more fully set forth herein. Plaintiff has
22 been injured as he relied on Defendants’ misrepresentations.
23 128. Defendant, through its acts of unfair competition, has unfairly acquired
24 several thousands of dollars from Plaintiff and consumers alike. Plaintiff
25 requests that this Court restore these monies for Defendants’ violations of the
26 California Business & Professions Code§ 17200, et seq., as discussed herein.
27
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1 129. Plaintiff further seeks an order requiring Defendants to make full restitution
2 of all monies wrongfully obtained and disgorge all ill-gotten revenues and/or
3 profits, together with interest thereupon.
4 FIFTH CAUSE OF ACTION
5 VIOLATION OF CALIFORNIA CONSUMERS LEGAL REMEDIES ACT
6 Cal. Civ. Code Section 1750, et seq.
7 130. Plaintiff repeats, re-alleges and incorporates herein by reference the above
8 allegations as if fully stated herein.
9 131. California Civil Code section 1750, et seq., titled the Consumers Legal
10 Remedies Act (“CLRA”), provides a list of “unfair or deceptive” practices in
11 a “transaction” relating to the sale of “goods” or “services” to a “consumer.”
12 The Legislature’s intent in promulgating the CLRA is expressed in Civil Code
13 section 1760, which provides, inter alia, that its terms are to be:
14
“Construed liberally and applied to promote its underlying purposes,
15 which are to protect consumers against unfair and deceptive business
practices and to provide efficient and economical procedures to secure
16 such protection.”
17
18 132. Defendant, Plaintiff, and the Class members are each “person[s]” as defined
19 pursuant to Civil Code section 1761(c).
20 133. Defendants’ products constitute “goods” as defined pursuant to Civil Code
21 Section 1761(a).
22 134. Plaintiff, and the Class members, are each “consumer[s]” as defined pursuant
23 to Civil Code section 1761(d).
24 135. Plaintiff and the Class member’s attempted procurement of Defendants'
25 products constituted a “Transaction” as defined by Civil Code section
26 1761(e).
27 136. Civil Code section 1770(a)(9) states that:
28
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1 143. Plaintiff suffered an “injury in fact” because Plaintiff’s money was taken by
2 Defendants as a result of Defendants’ false representations set forth on
3 Defendants’ advertisements.
4 144. As a direct and proximate result of Defendants' violations of the CLRA,
5 Plaintiff and the Class are entitled to and seek injunctive relief prohibiting
6 such conduct in the future.
7 145. Plaintiff served a certified letter pursuant to the CLRA, California Civil Code
8 section 1782 on Defendant with respect to its business.
9 146. As of the date of the filing of this Complaint, Defendants have not complied
10 with Plaintiff’s demands outlined in the letter to Defendant.
11 SIXTH CAUSE OF ACTION
12 NEGLIGENT MISREPRESENTATION
13 147. Plaintiff repeats, re-alleges and incorporates herein by reference the above
14 allegations as if fully stated herein.
15 148. Defendants represented to the public, including Plaintiff, that their products
16 would be delivered. However, as delivery dates for pre-order products
17 approached, Defendants would continuously delay and extend shipment dates,
18 and never delivering the paid for products.
19 149. Defendants made the representations herein alleged, negligently, and should
20 have known these representations were untrue, and Defendants lacked a
21 reasonable basis for believing the representations to be true at the time such
22 representations were made to Plaintiff, and others similarly situated.
23 150. By making these representations, Defendants intended to induce Plaintiff and
24 others to pay thousands of dollars for products that would never be delivered
25 to them.
26 151. Through its website, press conferences, and social media posts, Plaintiff saw,
27 believed, and reasonably relied upon Defendants’ representations and, in such
28
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1 reliance, continued to purchase products for Anovos and patiently wait for the
2 shipments.
3 152. Plaintiff was harmed in that Plaintiff actually had to pay thousands of dollars,
4 for items he never received.
5 153. Plaintiff’s reliance on Defendants' representation of products to be delivered
6 and estimated shipment dates was a substantial factor in causing Plaintiff’s
7 harm.
8 SEVENTH CAUSE OF ACTION
9 INTENTIONAL MISREPRESENTATION
10 154. Plaintiff repeats, re-alleges and incorporates herein by reference the above
11 allegations as if fully stated herein.
12 155. Defendants represented to the public, including Plaintiff, that their products
13 would be delivered to consumers. However, when shipment dates approached,
14 Defendant Anovos continuously extended the shipment dates, yet refused to
15 provide refunds in numerous instances.
16 156. Defendants intentionally made the representations regarding the delivery of
17 its products, all the while, Defendants knew that these representations were
18 false; or Defendants made the representations recklessly and without regard
19 for their truth.
20 157. By making these representations, Defendants intended that Plaintiff and other
21 consumers would rely on those statements in deciding whether or not to buy
22 Defendants’ products.
23 158. Plaintiff was harmed in that Plaintiff actually had to pay thousands of dollars,
24 and continues to be without the use and enjoyment of the products promised.
25 159. Plaintiff’s reliance on Defendants' representation of the products being
26 delivered and estimated shipment dates was a substantial factor in causing
27 Plaintiff’s harm.
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1 160. By engaging in the acts described above, Defendants are guilty of malice,
2 oppression, and fraud, and Plaintiff and the Class are therefore entitled to
3 recover exemplary or punitive damages.
4 PRAYER FOR RELIEF
5 WHEREFORE, Plaintiff respectfully requests that the Court grant Plaintiff
6 and the putative Class members the following relief against Defendants:
7 • This Action be certified as a class action;
8 • Plaintiff be appointed as the Class Representative;
9 • Plaintiff’s attorneys be appointed as Class counsel;
10 Plaintiff further prays for judgment against Defendants as follows:
11 First Cause of Action
12 Fraud
13 • An award of compensatory, special, general, and punitive damages
14 according to proof against all Defendants;
15 • An award of reasonable attorney’s fees and costs;
16 • An award of pre- and post-judgment interest; and
17 • Any other relief the Court may deem just and proper.
18 Second Cause of Action
19 Breach of Contract
20 (Plaintiff v. Anovos)
21 • An award of compensatory, special, and general damages according to
22 proof against Anovos;
23 • An award of reasonable attorney’s fees and costs;
24 • An award of pre- and post-judgment interest;
25 • Any other relief the Court may deem just and proper.
26 Third Cause of Action
27 Unjust Enrichment
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1 JURY DEMAND
2 154. Pursuant to the Seventh Amendment to the Constitution of the United States
3 of America, Plaintiff is entitled to, and demands, a trial by jury.
4
5 Date: June 3, 2019 HYDE & SWIGART, APC
6
By: s/ Joshua B. Swigart
7
Joshua B. Swigart, Esq.
8 Attorneys for Plaintiff
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Additional Attorneys
12 Abbas Kazerounian, Esq. (SBN: 249203)
13 [email protected]
KAZEROUNI LAW GROUP, APC
14 245 Fischer Avenue, Unit D1
15 Costa Mesa, CA 92626
Telephone: (800) 400-6808
16 Fax: (800) 520-5523
17
Kevin R. Duck, Esq. (SBN: 23043)
18 DUCK LAW FIRM, L.L.C.
19 5040 Ambassador Caffery Parkway, Suite 200
Lafayette, LA 70508
20 Telephone: (337) 406-1144
21 Fax: (337) 406-1050
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